Malta's Golden Passport Scheme Ruled Illegal by EU Court

The European Court of Justice officially declared Malta’s “golden passport” program illegal on April 29, 2025. The court found that selling citizenship to investors undermines the principles of mutual trust and sincere cooperation between EU member states. The scheme, launched in 2013 and revised in 2020, allowed foreign nationals to obtain Maltese citizenship in exchange for contributions of up to €750,000 with minimal residency requirements.

Investigations revealed widespread abuses, with many applicants spending only a few weeks in Malta while properties remained unoccupied. The case was supported by the so-called “Passport Papers” published by the Daphne Caruana Galizia Foundation.

The court concluded that the program amounted to the "commercialization of EU citizenship." While former Prime Minister Joseph Muscat defended the program as economically beneficial, civil society groups welcomed the ruling as a victory for EU integrity. Malta’s government is now reviewing the legal implications, though it noted the scheme generated €1.4 billion since 2015.

This ruling follows the closure of similar schemes in Cyprus, Bulgaria, and the UK. The EU is tightening its stance on citizenship-by-investment (CBI) programs, including the ability to suspend visa-free travel for third countries offering such schemes, as outlined in the new amendments to Regulation (EU) 2018/1806.

Concerns include money laundering, security risks, and inadequate vetting of investors. The Caribbean countries of Antigua & Barbuda, Dominica, St. Kitts & Nevis, and Grenada may soon face scrutiny. The shift reflects a growing EU-wide trend: phasing out investment migration schemes and reinforcing border and immigration control policies.